San Diego County FHA Loan Limits

Hud increases FHA Loan Limits in San Diego County

One of the hottest topics over the last day has been the anuoncement that FHA, Fannie Mae, and Freddie Mac loan limits have been increased.  In a move that sould effect a vast majoirty of California Home buyers; the U.S. Department of Housing and Urban Development announced on that effective March 5th the FHA, Fannie Mae, and Freddie Mac loans will ALL have their loan limits increased!  Here in San Diego County the  FHA loan limit for a One-Family home went from $367,000 to $697,500.  If you live outside of San Diego county you can view the  new loan limits for your area on the HUD website here.

What does this mean for a San Diego Home buyer?

FHA has traditionally been one of the better low down payment loan options that is available to a San Diego Home buyers for three main reasons:

First, with an FHA guaranteed loan the interest rates are usually 3/8th to a 1/2 point better then conventional loans.   

Second, FHA allows non-occupant cosigners.  So, for a younger family that doesn't necessarily have a lot of depth to their credit the FHA product allows them to add a relative or close personal friend as a cosigner on to the loan. thus spreading the risk to the lender and increasing the borrowers likelihood that they would not default. 

Finally, FHA has traditionally been more flexible with their debt to income ratios.

Why didn't more San Diego buyers use FHA Loans if it is so good?

Actually, before this recent run up in home prices and the loose lending guidelines that we had seen from 1999 to 2006, many San Diego County home buyers actually did utilize FHA loans.  But, in high cost areas like San Diego County this loan product over the last five years has effectively been eliminited as an option for the Single Family Home buying market due to the run-up in the median price of the single family homes, see San Diego Home values here.   So, unless you were looking to buy a total dump or a condo the low loan limits placed the FHA product on most loan officers back shelf...  Even today, the median home price here in San Diego County is well over the old loan limits in nearly every zip code, but with the new FHA loan limit now set at $697,500 todays home buyers will have a great new source of funding for their next home purchase.

If you would like more information about the New FHA loan limits or want to discuss the purchase of a home in San Diego county please give us a call!

Bob Crain

San Diego Homes

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: